Economics Vocab Ch1-6 pd4

What does Scarcity refer to in economics?

• The fundamental economic problem of having limited resources to meet unlimited wants.
• A theory explaining the distribution of wealth.
• The study of money supply and demand.
• The study of production and labor market.
• The restriction on trade between countries.

What is Capital in economic terms?

• Man-made resources used to produce other goods and services.
• Natural resources used for production.
• The financial funds needed for investment.
• The knowledge used to manage a business.
• The labor used in manufacturing.

What is the definition of Economics?

• The study of how people use limited resources to satisfy unlimited wants.
• The study of how money is distributed in an economy.
• A study of wealth accumulation and distribution.
• The process of managing natural resources.
• The process of producing physical goods.

What defines a Capital Good?

• A manufactured item used to produce other goods and services.
• A service intended for the final consumer.
• A tangible product used for personal consumption.
• A raw material in the production process.
• A tool used for recreational purposes.

Which of the following describes a Need?

• A basic requirement for survival, such as food, water, or shelter.
• A desire for entertainment or luxury.
• A good that fulfills a person’s social status.
• An item purchased to enhance comfort but not necessary for survival.
• A want for something to show off to others.

What is meant by Labor in economics?

• The human effort used in production, including both physical and mental work.
• The use of technology in the manufacturing process.
• Machines used in the production process.
• Financial investment in a business venture.
• The use of capital to acquire resources.

What defines a Want?

• A desire for something that is not essential for survival.
• A basic necessity required for survival.
• A desire for something that is part of a basic need.
• A requirement for economic production.
• Something obtained without any cost.

What is an Entrepreneur?

• A person who starts a business and takes on the risk of profit or loss.
• A person who invests money but does not manage the business.
• A manager who supervises production activities.
• A worker who completes manual labor tasks.
• A consumer who buys goods and services.

Which of the following best describes the Factors of Production?

• The resources used to produce goods and services: land, labor, capital, and entrepreneurship.
• The natural resources used for final consumption.
• Only the physical resources necessary for production.
• Financial capital used for business investments.
• The human work used to create services.

What does Gross Domestic Product measure?

• The total value of all goods and services produced within a country in a given time period.
• The total market value of exports and imports.
• The combined value of all government expenditure.
• The sum of wealth owned by the people in a country.
• The total money supply in circulation within a country.